Research On The Financial System For Urban And Rural Basic Public Services Equalization

To promote the equalization of basic public services in urban and rural areas, is not only the institutional arrangements of enjoying the development of reform and opening up, but also the practical needs of social fairness and justice and making improvement in people's life. Due to the dual constraints of historical and practical conditions, the equalization of basic public services in urban and rural areas is facing a series of challenges, such as supply inequality and structural imbalance. The urban-rural gap is widening. The shortage of public services in rural areas is becoming a "bottleneck" which has restricted the economic development and social progress. In recent years, China's national economy which is driven by urbanization and industrialization has made remarkable development. Its GDP has maintained an annual growth rate at nearly 10%. However, during the rapid economic growth, our public utilities didn't get improved at the same speed. There is still huge distance between urban and rural areas in supply system and content of public services. The dual-financial system is an important factor which restricts the development of basic public services in urban and rural areas, and it also affects social harmony and stability. Based on these, this article starts from analyzing the supply inequality of basic public services in urban and rural areas, and then evaluates the performance of public expenditure by using data envelopment analysis (DEA). The empirical analysis results will be used to analyze the relative efficiency of public expenditure between urban and rural areas and the indexes of basic public services. The differences of basic public services supply between urban and rural areas as well as the reasons why that happened will also be demonstrated in this paper. Finally, it will summarize the supply principles and make policy recommendations to promote the equalization of basic public services in urban and rural areas, which provides the necessary theoretical support for urban-rural integration and social justice.